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KD Holding Group
Notes to Consolidated Financial Statements as at and for the year ended 31 December 2007
management or investment strategy and reported
2.8.4 Available-for-sale financial assets
to key management personnel on that basis are
designated at fair value through profit and loss.
Available-for-sale investments are those intended to
be held for an indefinite period of time, which may
2.8.2 Held-to-maturity financial assets
be sold in response to needs for liquidity or changes
in interest rates, exchange rates or equity prices.
Held-to-maturity investments are non-derivative
financial assets with fixed or determinable payments
and fixed maturities that the Group’s management has
the positive intention and ability to hold to maturity.
If the Group were to sell other than an insignificant
amount of held-to-maturity assets, the entire category
Regular-way purchases and sales of financial assets
at fair value through profit or loss, held to maturity
and available for sale are recognised on trade-date
– the date on which the Group commits to purchase
or sell the asset.
would be reclassified as available for sale.
Financial assets are initially recognised at fair value
2.8.3 Loans and receivables
plus transaction costs for all financial assets not
Loans and receivables are non-derivative financial
assets with fixed or determinable payments that are
not quoted in an active market, other than: (a) those
that the entity intends to sell immediately or in the
short term, which are classified as held for trading,
and those that the entity upon initial recognition
designates as at fair value through profit or loss;
(b) those that the entity upon initial recognition
designates as available for sale; or (c) those for
which the holder may not recover substantially all
of its initial investment, other than because of credit
deterioration.
carried at fair value through profit or loss. Financial
assets carried at fair value through profit and loss
are initially recognised at fair value, and transaction
costs are expensed in the income statement.
Financial assets are derecognised when the rights
to receive cash flows from the financial assets
have expired or where the Group has transferred
substantially all risks and rewards of ownership.
Financial liabilities are derecognised when they
are extinguished − that is, when the obligation is
discharged, cancelled or expires.
Available-for-sale financial assets and financial
assets at fair value through profit or loss are
subsequently carried at fair value. Loans and
receivables and held-to-maturity investments are
carried at amortised cost using the effective interest
method. Gains and losses arising from changes in
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